It looks as if Nebraska has New Brunswick’s disease of conflicting signals in economic development. The Governor of Nebraska unveiled last week a new economic development plan with tax incentives for growing small businesses. He stated: “When I became governor, I promised I would do all I could to improve businesses already in the state, and allow them to expand. That is essential to grow our state’s economy.” He continues” “It’s important for our state to take action and respond to changes in the businesses climate, and use these tools to promote entrepreneurial incentives.”
And then he announces the new program at a Frito-Lay plant.
Hmmm.
A new program to grow small business, improve businesses in the state and promote entrepreneurship.
And then talk about the large businesses like Frito-Lay.
I wish Nebraska well but if they go down the path of Atlantic Canada and spend 95% of their time, effort and programming on small business growth, they will get the same result as us.
Nebraska, and New Brunswick, need a greater number of large businesses to move into the state and create stable, good paying and long term economic stability.
And if you look at the example in Alberta, Ontario, Arizona, etc. when there is massive large business investment, the small guys make out just fine – thank you very much.
As I have said before in this blog, I asked an acquaintance of mine that owns a restaurant one time if he would prefer a $10,000 grant, a 10% corporate tax cut or 10,000 new customers.
He, resoundingly, said the 10,000 new customers. And new customers come from economic growth. And economic growth comes from business investment. And the vast majority of business investment is implemented by larger, multinational firms.
So go ’em, Nebraska and stop tinkering around on the margin lest you recieve our fate.